EU-Canada

The EU-Canada Comprehensive Economic and Trade Agreement (CETA) entered into force provisionally on 21 September 2017. This agreement allows for exports in good and services to flow more easily from the European Union to Canada. Please consult chapters 9-13 for information on services (Full Text of CETA).

CETA Delivers Positive Results After One Year

September 21, 2018 marked the first anniversary of the Comprehensive Economic and Trade Agreement between the European Union and Canada. Although it is too early to draw any firm conclusions, the initial results are showing positive trends. CETA has given a boost to the business climate between the EU and Canada and has made it easier for both countries to export goods and services. According to the European Commission, CETA has increased overall trade between the EU and Canada from €63,172 (million in total trade) in 2015 to €69,212 in 2017. Imports from the EU to Canada have increased by 8.3% from 2016 to 2017. Already the trade agreement is shaping into a success for both participants. For the full report click here.

Commissioner for Trade Cecilia Malmström said: “The EU-Canada trade agreement has now been in action for a year and I’m pleased with the progress made so far. The preliminary data shows there is plenty to celebrate, even at this stage. Exports are up overall and many sectors have seen impressive increases. This is great news for European businesses, big and small. As ever with these agreements, there are certain areas where we have to make sure that we thoroughly implement what has been agreed, making sure that citizens and companies can fully benefit from the new opportunities. This is something I intend to discuss with my Canadian counterparts at the Joint Committee next week. I’m happy to say that our partnership with Canada is stronger than ever – strategically as well as economically. Together, we are standing up for an open and rules-based international trading order. CETA is a clear demonstration of that.”

The European Union is Canada’s second-largest trading partner accounting for 9.6% of its trade in goods in 2016. The European Union exported €5.1 billion more to Canada than it imported and trade in services between the two amounted to €30.1 billion in 2015. Although Canada accounted for only 2% of the EU’s total external trade in goods in 2016 Canada remains an important trading partner to the EU especially when trading machinery, transport equipment, and chemical and pharmaceutical products.

There is also a growing importance of trade in services between the EU and Canada. Approximately, 58.3% of total EU value added exports are services respectively, 44.8% of total Canada value added exports are services. The figure above highlights EU trade in services with Canada.